KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
USA - NYSE:KREF - US48251K1007 - REIT
8.71 USD
+0.05 (+0.58%)
8.75 USD
+0.04 (+0.46%)
Overall KREF gets a fundamental rating of 3 out of 10. We evaluated KREF against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. KREF has a bad profitability rating. Also its financial health evaluation is rather negative. KREF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KREF had negative earnings in the past year.
KREF had a positive operating cash flow in the past year.
Of the past 5 years KREF 4 years were profitable.
Each year in the past 5 years KREF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.66%, KREF is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
KREF has a worse Return On Equity (-3.58%) than 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROIC | N/A |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KREF's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of KREF has declined.
KREF has a better Gross Margin (30.70%) than 60.61% of its industry peers.
In the last couple of years the Gross Margin of KREF has declined.
The Profit Margin and Operating Margin are not available for KREF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
KREF does not have a ROIC to compare to the WACC, probably because it is not profitable.
KREF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KREF has more shares outstanding
KREF has a better debt/assets ratio than last year.
2.2 Solvency
KREF has an Altman-Z score of -0.02. This is a bad value and indicates that KREF is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KREF (-0.02) is comparable to the rest of the industry.
The Debt to FCF ratio of KREF is 48.47, which is on the high side as it means it would take KREF, 48.47 years of fcf income to pay off all of its debts.
KREF's Debt to FCF ratio of 48.47 is fine compared to the rest of the industry. KREF outperforms 71.21% of its industry peers.
A Debt/Equity ratio of 3.90 is on the high side and indicates that KREF has dependencies on debt financing.
KREF's Debt to Equity ratio of 3.90 is fine compared to the rest of the industry. KREF outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Altman-Z | -0.02 |
ROIC/WACCN/A
WACC6.68%
2.3 Liquidity
KREF has a Current Ratio of 0.66. This is a bad value and indicates that KREF is not financially healthy enough and could expect problems in meeting its short term obligations.
KREF's Current ratio of 0.66 is fine compared to the rest of the industry. KREF outperforms 65.15% of its industry peers.
A Quick Ratio of 0.66 indicates that KREF may have some problems paying its short term obligations.
KREF has a better Quick ratio (0.66) than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 97.46% over the past year.
The earnings per share for KREF have been decreasing by -34.56% on average. This is quite bad
Looking at the last year, KREF shows a very negative growth in Revenue. The Revenue has decreased by -10.20% in the last year.
The Revenue has been growing by 16.21% on average over the past years. This is quite good.
EPS 1Y (TTM)97.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-108.11%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-31.55%
3.2 Future
Based on estimates for the next years, KREF will show a very strong growth in Earnings Per Share. The EPS will grow by 48.43% on average per year.
The Revenue is expected to decrease by -5.45% on average over the next years.
EPS Next Y146%
EPS Next 2Y65.95%
EPS Next 3Y48.43%
EPS Next 5YN/A
Revenue Next Year-19.44%
Revenue Next 2Y-12.44%
Revenue Next 3Y-5.45%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for KREF. In the last year negative earnings were reported.
KREF is valuated reasonably with a Price/Forward Earnings ratio of 11.33.
KREF's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of KREF to the average of the S&P500 Index (22.92), we can say KREF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KREF is valued cheaper than 89.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.62 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KREF's earnings are expected to grow with 48.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y65.95%
EPS Next 3Y48.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.59%, KREF is a good candidate for dividend investing.
KREF's Dividend Yield is slightly below the industry average, which is at 12.94.
Compared to an average S&P500 Dividend Yield of 2.34, KREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.59% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of KREF are negative and hence is the payout ratio. KREF will probably not be able to sustain this dividend level.
DP-202.99%
EPS Next 2Y65.95%
EPS Next 3Y48.43%
8.71
+0.05 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.74%
Inst Owner Change-0.03%
Ins Owners1.71%
Ins Owner Change2.64%
Market Cap572.07M
Revenue(TTM)594.14M
Net Income(TTM)-44388000
Analysts81.82
Price Target11.6 (33.18%)
Short Float %6.68%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.59% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP-202.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.95%
Min EPS beat(2)44.18%
Max EPS beat(2)49.72%
EPS beat(4)3
Avg EPS beat(4)-33.31%
Min EPS beat(4)-233.84%
Max EPS beat(4)49.72%
EPS beat(8)6
Avg EPS beat(8)-66.11%
EPS beat(12)8
Avg EPS beat(12)-42%
EPS beat(16)11
Avg EPS beat(16)-38.29%
Revenue beat(2)0
Avg Revenue beat(2)-10.2%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-7.64%
Revenue beat(4)0
Avg Revenue beat(4)-6.56%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)-1.64%
Revenue beat(8)2
Avg Revenue beat(8)-3.79%
Revenue beat(12)5
Avg Revenue beat(12)44.56%
Revenue beat(16)9
Avg Revenue beat(16)59.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.07%
EPS NY rev (1m)-11.92%
EPS NY rev (3m)-16.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.33 | ||
| P/S | 1.11 | ||
| P/FCF | 5.62 | ||
| P/OCF | 5.48 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.77
Fwd EY8.83%
FCF(TTM)1.55
FCFY17.78%
OCF(TTM)1.59
OCFY18.26%
SpS7.83
BVpS18.88
TBVpS18.88
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% | ||
| FCFM | 19.78% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 279.45% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | -0.02 |
F-Score5
WACC6.68%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-108.11%
EPS Next Y146%
EPS Next 2Y65.95%
EPS Next 3Y48.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-31.55%
Revenue Next Year-19.44%
Revenue Next 2Y-12.44%
Revenue Next 3Y-5.45%
Revenue Next 5YN/A
EBIT growth 1Y-166%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-35.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.09%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-30.26%
OCF growth 3Y2.03%
OCF growth 5Y7.65%
KKR REAL ESTATE FINANCE TRUS / KREF FAQ
What is the fundamental rating for KREF stock?
ChartMill assigns a fundamental rating of 3 / 10 to KREF.
Can you provide the valuation status for KKR REAL ESTATE FINANCE TRUS?
ChartMill assigns a valuation rating of 5 / 10 to KKR REAL ESTATE FINANCE TRUS (KREF). This can be considered as Fairly Valued.
How profitable is KKR REAL ESTATE FINANCE TRUS (KREF) stock?
KKR REAL ESTATE FINANCE TRUS (KREF) has a profitability rating of 2 / 10.
How financially healthy is KKR REAL ESTATE FINANCE TRUS?
The financial health rating of KKR REAL ESTATE FINANCE TRUS (KREF) is 3 / 10.
Can you provide the expected EPS growth for KREF stock?
The Earnings per Share (EPS) of KKR REAL ESTATE FINANCE TRUS (KREF) is expected to grow by 146% in the next year.